Rexahn Pharmaceuticals, Inc. (NYSEMKT: RNN) is having an overwhelmingly rough day in the market today, and for good reason. The company announced that it would be moving forward with a reverse stock split, leading to fear among investors and declines in the stock. As is usually the case, our partners at Trade Ideas were the first to inform us of the declines. At the moment (10:36), RNN is trading at $0.51 per share after a loss of $0.10 per share (16.54%) thus far today.
RNN To Move Forward With Reverse Split
As mentioned above, Rexahn Pharmaceuticals is having a rough day in the market today after announcing that it would be moving forward with a reverse stock split. The split will be a 1 for 10 split. It was announced that the reverse split will become effective on May 5th.
While this is only an aesthetic change, it is a concern among investors. Ultimately, reverse splits are generally used to maintain listings on the market when the company sees no other way to improve the price of the stock. As a result, reverse splits, like the one we’re going to see from RNN lead to fear among investors.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on RNN. In particular, we’re interested in the reactions of investors as the reverse split moves forward. We’ll continue to follow the story closely and bring the news to you as it breaks!
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